Staking Elrond (EGLD)

Image source: https://blockstern.io/elrond-network-a-blockchain-platform-for-the-new-internet-economy/

As of the end of March and beginning of April 2021, the Elrond Network completed its upgrade to Phase 3 Staking. There have been changes to the network, the native web Elrond Wallet (web), and the native Maiar app to support the upgrade.

Staking of the native token EGLD is now available on the Elrond web wallet and the Maiar mobile app. What’s more, unlike pre-staking phase which required a minimum of 10 EGLD to participate — a holder of Elrond (EGLD) can stake with a minimum of 1 EGLD.

As of 11 May 2021 — after buying 2 more EGLD bringing my position to 4 EGLD — I delegated my EGLD to a validator. This supports the Elrond Network while earning me some EGLD as part of staking rewards.

Each Proof of Stake (PoS) cryptocurrency has its own way of running staking operations. Elrond’s way of running its staking operations is better than most! A holder of EGLD can use either the native Elrond Web Wallet or the native Maiar app to stake. Staking is done via the ‘EARN’ option. A minimum of 1 EGLD is required to stake.

THE PROCESS OF STAKING

After transferring my 4 EGLD to my Elrond Wallet, I was ready to select a Validator to delegate my stake. I ended up choosing VALIDBLOCKS.COM for its stated 15.39% APY. VALIDBLOCKS.COM charges a 15% fee, which — after looking through the other Validators — I noticed is quite standard.

Note: The 15% fee is what the Validator gets of the overall reward, which for VALIDBLOCKS.COM is 18.47% APY. The stated 15.39% APY is inclusive of this 15% fee.

VALIDBLOCKS.COM Elrond Validator (as of 11 May 2021)
Gross APY% = 18.47% APR
Fee = 15% of the rewards
NET APY% = 15.39%

After picking a Validator go ahead and stake your EGLD. With 4 EGLD I attempted to stake all of it, but the wallet automatically kept 0.005 EGLD in my Available balance to help cover transaction fees. If you intend to stake the majority of your EGLD in your Elrond/Maiar wallet, make sure to leave some EGLD in your Available balance to help cover transaction fees. Just 0.01 EGLD would be more than enough for this purpose.

The cost of staking to a Validator was 0.00018138 EGLD, about three cents $US.

The process of staking EGLD

The total I was able to stake AFTER the staking fee was 3.99481862 EGLD.

(Of the 4 EGLD that was in my Available balance, 0.0050 EGLD was reserved in the Available balance and 0.00018138 EGLD was deducted as a ‘staking fee’.)

That was easy!

THE PROCESS OF CLAIMING REWARDS

Rewards can be claimed every 24 hours; however, there is a small fee (0.0001 EGLD) each time you claim your rewards, so keep this in mind. For small amounts of staked EGLD (<5 EGLD), claiming rewards every 1–2 weeks may be more optimal than doing it every day.

Claimed rewards can either be sent to the Available balance, or re-staked to the Validator (you know, to compound). Either way, the action of claiming rewards or re-staking rewards is done manually.

The process of staking EGLD rewards

ELROND WALLET OVERVIEW

Your total EGLD balance is made up of : ‘Available’, ‘Staked’ and ‘Rewards’.

In my opinion, Cardano (ADA) has the best staking system (the holder is paid rewards every 5 days, and the rewards are automatically re-staked). The Elrond Network, however, also has a very good staking system. The best thing about Elrond is that rewards are earned and accumulated everyday. The only negative about staking on Elrond is the 10 day unlocking period you need to wait to have your EGLD available (there is no lock in period on Cardano!).

Other crypto staking posts —
Staking Cardano (ADA) (Some tips on staking your ADA)

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